AXA insurance company recently published evidence of what everyone suspected – during COV, hundreds of thousands of us took our “side gig” hobby and turned it into a business. There are now over 15 million home-based businesses in the US.
Be Your Own Boss
Most of these businesses are run by 20-30 year-olds (51%) but over a third are owned and operated by people aged 40 to 60 (33%). There were primarily two reasons Americans took the leap: to follow a passion (42%) or to be their own boss (37%). No surprise there.
Nearly a quarter of these home-based businesses are e-commerce and home crafts. 16% are professional services (consulting, for example); 10% are construction; 9% are IT and technical services, and 8% are food and beverage.
Is Your Homeowner’s Insurance Policy Enough?
The alarming statistic to me (granted, I’m a belt + suspenders kind of guy because you just can’t be too careful) is that many of these 15 Million business owners believe their homeowner’s insurance policy protects them for their home business activities. It does not!
If a home-based business stores customers’ personal or financial information on a computer or cloud, they also have significant exposure if there is a data breach or attack. Given the increase in cyber attacks, insurers are scrutinizing businesses’ cyber policies and procedures before offering coverage, often at a significantly higher cost.
Congratulations if you are a new Home-based Business Owner! You have followed your passion and become the boss. You will never look back and say you wish you had tried it! Now, take a few minutes to ensure you are not risking everything you own because it was not properly protected.
Give us a call today!